The cumulative impact of welfare reforms

Less than one quarter of welfare recipients will be in a position to mitigate reductions in benefit payments by finding work or moving to cheaper accommodation, an independent study carried out by the Centre for Economic and Social Inclusion has today revealed.

The study shows that by 2015–16 the income of households claiming benefit will be lower on average by £1,615 per year (£31 per week). This is equivalent to around £1 in every £7 of household income. However, a shortage of jobs and affordable homes in many areas means that four out of every five of these households are likely to need some form of assistance from their council to help them cope with the reduction in welfare.